Yuan Liquidity Squeeze a Bad Sign for China’s Equity Market
- China focusing on currency at expense of stocks: Hao Hong
- Yuan loan rates in Hong Kong surge to seven-month high
Yuan Liquidity Choke Bad for Stocks
This article is for subscribers only.
The outlook for one of the world’s worst-performing stock markets is getting dimmer.
China’s benchmark equity index was jolted out of its inertia on Monday when the cost of borrowing the yuan in Hong Kong jumped the most in seven months, exacerbating concern about a global selloff. The Shanghai Composite Index tumbled as much as 2.6 percent after having gone 19 trading days without a 1 percent closing move in either direction.